Health Care Industry Developments 2008 - Audit Risk Alert

This Audit Risk Alert is intended to provide auditors of financial statements of health care organizations with an overview of recent economic, industry, technical, regulatory, and professional developments that may affect the audits and other engagements they perform. This alert can also be used by an entity's internal management to address areas of audit concern. This alert is an important tool in helping you identify the significant risks that may result in the material misstatement of financial statements. Moreover, this alert delivers information about emerging practice issues and current accounting and auditing developments.

This alert provides information on regulatory updates and recently issued accounting and auditing standards relevant to the health care industry. In this alert you will find information such as:

• New Filing and Audit Requirements for ERISA-Covered 403(b) Employee Benefit Plans
• Medicare Recovery Audit Contractors
• Medicare Risk Adjusters
• Uniform Prudent Management of Institutional Funds Act
• Omnibus Changes to Consolidation and Equity Method Guidance for Not-for-Profit Organizations (FSP SOP 94-3-1 and AAG HCO-1)
• Accounting for Collaborative Arrangements (EITF Issue No. 07-1)

You will also find information on emerging issues such as:

• Convergence with International Financial
  Reporting Standards
• The FASB Codification Project
• The ASB's Clarity Project including convergence with international standards

This publication is an other auditing publication as defined in AU section 150. Other auditing publications have no authoritative status; however, they may help the auditor understand and apply the Statements on Auditing Standards. The auditing guidance in this document has been reviewed by the AICPA Audit and Attest Standards staff and published by the AICPA and is presumed to be appropriate. This document has not been approved, disapproved, or otherwise acted on by a senior technical committee of
the AICPA.

How This Alert Helps You

    .01 This Audit Risk Alert (alert) helps you plan and perform your health care industry audits. This alert can also be used by an entity's internal management to address areas of audit concern. This alert provides information to assist you in achieving a more robust understanding of the business, economic, and regulatory environments in which your clients operate. This alert is an important tool in helping you identify the significant risks that may result in the material misstatement of financial statements. Moreover, this alert delivers information about emerging practice issues and current accounting, auditing, and regulatory developments.

    .02 This alert is intended to be used in conjunction with AICPA Comprehensive Audit Risk Alert—2008 (product no. 022339kk). This alert can be obtained by calling the AICPA at (888) 777-7077 or visiting www.cpa2biz.com. You should refer to the full text of accounting and auditing pronouncements as well as the full text of any rules or publications that are discussed in this alert.

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